A recent headline caught my attention and inspired this train of thought.  It read something like Toilet Paper Drives the Economy.  The gist of the article was

A shift from one-ply to two-ply (and now three-ply) may not seem significant. But to ignore it is to miss an important point: Because people are literally flushing the money they spend on these products down the toilet, spending habits in this very personal area can reveal important clues about the financial health of shoppers. And that reflects on the growth potential for the economy and the stock market as a whole. It all depends on how the roll turns, and it’s definitely turning.

I had to stop and think about that one because just that morning we had picked up a giant package of Cottonelle Ultra.    So does my purchase indicate that I have faith in the upturn of the economy or that I just want to spoil myself with softness in private while preaching penny pinching in public? Guilty as charged!

By: Sean Lebida

Let’s face it, money is tight for just about everybody right now. The rising cost of living is causing all of us to take a step back and find ways to make our hard-earned cash go as far as possible. Many of us are buying more energy-efficient appliances, finding alternative ways of heating and cooling our houses, and looking into hybrid cars or smart cars as a way to possibly lower our gas budget. Unfortunately, this often involves a large initial expense. The truth is that older vehicles as well as new ones have the potential to be much more fuel efficient with the proper maintenance.

Most vehicle or equipment owners know the basics of vehicle maintenance. Keeping up with the maintenance needs of each vehicle will increase the longevity of the vehicle/equipment. Regular maintenance usually consists of changing engine oil, properly inflating tires, and changing the air filter. Most of us, however, have looked past the actual fuel that we are filling the fuel tanks with, and trusting that fuel companies are providing the best fuel mixture for our vehicles’ engines.

The fact is that the quality of fuel for our vehicles could be greatly improved upon. Simply put, over time, even in newer vehicles, fuel remnants build up in the engine and water and sludge can build up in the fuel system, causing the fuel economy to go down. Just like with every other aspect of a vehicle, the fuel system and engine components need regular maintenance.

The best way I have found to keep my engines and fuel systems operating at their highest potential year-round is by using Mileage Maxx Mileage Booster. I have actually found that by using this product at every fill up, I have increased my miles per gallon by 10%. Mileage Maxx additive consists of a hydrocarbon enhancer that increases the efficiency of the fuel burn. It also contains an added lubricant that decreases the friction in the engine parts, as well as a detergent that cleans out the fuel system. I have found that my vehicles run much more smoothly and efficiently with this product. Also, I would like to point out that Mileage Maxx more than pays for itself, and it is inexpensive and easy to use.

If you would like to find out more about Mileage Maxx and the studies that prove it does what I have said it does, you can check it out here:

Main Fuel Saver
Mileage Maxx

Sean Lebida has been in the Construction-Building industry for the past 15 years. Lebida is a contributing author for the above sites and distributor of Mileage Maxx because he knows how important it is to cut costs and maintain productivity. Time is money. He is a proud user of Mileage and all his business vehicles use it.

Pension funds have lost about 5 trillion dollars worldwide during 2008. And the disastrous losses do not stop at that amount because the stock exchanges have started the year with further grave losses. The financial crisis will have a serious impact on the way of life of the generations in an age of 50 years and older. The problems have to be differentiated between following main groups: the critical age near before retirement and the retirement age. The age near before retirement lasts from 50 to the statutory pension age between 58 and 65 years in most of the industrialised countries and the retirement age begins after the statutory retirement from work and the beginning of pension payments.

The risks for the population between 50 and retirement from work

This part of the population lives in an uncertain situation. Most of the pension funds have suffered serious losses. The liabilities exceed the assets of most of the pension funds. Thus pensions could be cut and be lower than expected in the future. This could result in a weaker purchasing power for the next generation that reaches the pension age within the next 10 to 15 years.

If the people have saved money besides the pension funds of their employer or if they do not have joined a corporate pension insurance and rely on other retirement schemes, they also have experienced losses on their assets in stocks, funds or real estate. It is difficult to catch up serious financial losses within a few years.

It makes matters worse if they lose their job a few years before reaching the pension age. They still are not eligible to receive a pension income and they have trouble getting a new job in an advanced age. Some employers might provide them with a compulsory retirement but this kind of schemes always mean a shortage on pension payments.

These people even can lose their own homes if their income does not longer enable them to pay the mortgages on their real estate. The situation gets worse if they have to pay back interest rates and redemption rates on other debts.

How to cope with such a horrible prospect

There is no easy solution:

1. The best and simple way would be to invest about a quarter of the savings in gold. Gold seems to become a durable currency that can be converted in any paper currency if needed. There is no confidence in stock investments and there are doubts in the future value of the money. Many experts forecast inflation.

2. People need to be flexible and even to learn something new after many years of professional experience in order to get another job after they have been dismissed. This will be a very tough task, because jobs get very rare. People are in a favourable position, if they have acquired some practical skills and crafts. There is always a chance to get something to do for people who can repair machines and equipment, can do plumbing, are able to amend cloths, can cook for catering services or care for elderly people. Such jobs could help to gap the time until a person gets eligible to receive a national or corporate pension or both of them. The high time is over for bank clerks and investment bankers. It is better to acquire professional skills that can be applied on a variety of jobs than to stick to a highly specialised profession that skills are of no use elsewhere.

3. Cash is king. People should use the opportunity to use all kinds of tax deferred saving schemes. There is a great choice of such saving schemes that banks and insurance companies of western countries offer. And it is recommendable to save much higher amounts than tax exemption rules provide for. The more savings can be accumulated the better. People should start saving in a young age and intensify it after their children are grown up and educated.

4. Saving money is better than purchasing a luxurious car that consumes much fuel and high maintenance costs.

5. Health insurance is a proven prevention against poverty. Most of the European countries know compulsory health insurance systems. The American should grasp the chances of getting an overall health insurance system.

6. Debts are a dangerous poverty trap. People should budget their monthly consumption according to their income. They should restrain from using loans and overdrawing credit cards and bank accounts.

7. It is favourable to live in own property, either a house or a condominium if affordable according to the regular income. It is recommendable to use savings for mortgage redemption in order to lower the liabilities before the pension age is reached.

How to cope with the financial crisis after reaching the retirement age

Most of the above hints are valid for people who already have retired from work. Only few tips have to be added:

1. It is tough if the people still are compelled to work in order to earn their living because their pension income and savings are insufficient. Some legislation and pension fund rules allow a deferred retirement and subsequently a higher pension income. This opportunity to receive later a higher pension should be used if the labour market situation allows it. It is fine, if elderly people still can work voluntarily. Work also means to join the social live and to interact with the younger generation. It is, however, difficult to find a job for elderly people while masses of younger people line up in front of the labour offices.

2. Flexible people with some skills for crafts might still get paid by doing some work: e.g. either helping farmers during the harvest season or doing some gardening for landlords. They could assist wards at office buildings. They could help if others are on vacation. Baby sitting or pet sitting are also popular occupations in order to generate some side income. More about how to make money can be read at Make Money Tip. The website also offers free tools for personal finance and a link to the best free online course about financial markets.

Liliane Waldner

Liliane Waldner is a business economist. She has attended the board of several public entities companies and pension funds, some of them dealing with the financial markets. Her website is: http://www.makemoneytip.com

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